June 21, 2015

Sydney, Australia: June 22, 2015 Recall Holdings Limited (ASX: REC), a global leader in information management, today announces the implementation of the second Facility Optimisation Program (FOP 2), provides an update on M&A activity, and confirms its earnings guidance for FY15.

Recall and Iron Mountain are working closely to prepare the regulatory filings required in relation to the Scheme Implementation Deed announced June 8, 2015, and progress is being made in line with expectations. The investment programs, related charges, expected EBITDA contribution from the items noted below, and the anticipated FX impact on FY15 financial results are included in the base business assumptions used by Iron Mountain during the transaction due diligence process.

Facility Optimisation Program 2 (FOP 2)

FOP 2 builds upon the first Facility Optimisation Program (FOP 1) announced in June 2014, which is progressing well and in line with the original plan. Since announcing FOP 1 and as communicated in our H1 FY15 results, Recall has sought new opportunities that will further improve facility utilisation, drive operational efficiencies and reduce real estate costs. FOP 2 identifies such opportunities in Australia, Brazil, France, Denmark and the United Kingdom. It focuses on the Document Management Services (DMS) service line and includes exiting 16 facilities and the development of four new custom built facilities. Recall customers will not experience any interruption to their service while FOP 2 is being implemented, and the highest level of service and security will continue to be provided. FOP 2 is due to be completed by September 2017.

Once fully implemented, FOP 2 will improve annual EBITDA by over US$6.5 million, with savings mainly associated with reduced property and operational costs. The EBITDA impact in FY16 will be negligible, in FY17 it should be approximately US$4 million, with the full US$6.5 million benefit realised in FY18 and beyond. This program has targeted IRRs in excess of 20 percent.

A restructuring charge of approximately US$16 million will be incurred in the period ended June 30, 2015 as a result of FOP 2. The restructuring charge comprises a non-cash cost of approximately US$5 million relating to surplus plant and equipment and net cash costs of approximately US$11 million, which principally relate to lease exit, relocation and other operational costs that will be incurred during the course of FOP 2. Cash incentives of US$8 million, that are not considered part of the restructuring charge, will be received as lease incentives for new facilities entered during the course of FOP 2. Accordingly, excluding capex, the net cash cost will be approximately US$1 million in FY16, with a total net cash cost of US$3 million for the project.

FOP 2 will require capex investment of US$30 million, primarily related to additional racking to accommodate the consolidated holdings. Of this amount, US$22 million is expected to be incurred prior to the end of FY16.

M&A update

In H2FY15, Recall has completed six acquisitions, with another in Brazil scheduled to close at the end of June. These acquisitions include three in the U.S., two in Australia and two in Brazil. Purchase price consideration for the seven acquisitions will be approximately US$67 million, and while these acquisitions will not be material to FY15, they will contribute approximately US$27 million to FY16 revenue.

For the full 2015 financial year, Recall will have closed 13 acquisitions, for total purchase consideration of US$175 million, which are expected to generate revenue in FY16 of US$58 million. The average acquisition EBITDA multiple, post synergies, of these transactions is less than 6.5x. Recall’s acquisition pipeline remains strong and a number of deals consistent with our core business strategy are at an advanced stage, and are expected to close in the coming months.

Earnings guidance confirmation

Recall expects FY15 revenue growth, in constant currency terms, to be approximately 7-8 percent, after adjusting for the disposal of SDS Germany, which was owned by Recall for the first five months of FY15. Consistent with guidance, FY15 EBITDA growth, in constant currency, is expected to be approximately 10-12 percent, (8-10 percent excluding SDS Germany) with FY15 EBITDA expected to be between US$215 million - US$220 million, in constant currency.

As expected, FY15 results on an actual FX basis will be negatively impacted by approximately 7-9 percent, as compared to constant currency, due to the significant strengthening of the USD during FY15, primarily against the AUD, Euro and Brazilian REAL.

About Recall

Recall is a global leader in information management solutions, offering customers complete management of their physical and digital information. Recall’s innovative solutions empower organizations to make better business decisions throughout the information lifecycle, while assuring regulatory compliance and eliminating unnecessary resources, time and costs. Recall services more than 80,000 customer accounts in over 300 dedicated facilities, spanning five continents in 24 countries. For more information, please visit recall.com.